Modular multilevel inverters are promising candidates for next generation of efficient, robust and reliable inverters in large scale photovoltaic system. A modular cascaded multilevel inverter based shunt hybrid active power filter (SHAPF) for three phase grid connected large scale PV systems is represented in this paper. The main contribution of this paper is to model and control of grid interfaced large scale photovoltaic system with embedded hybrid active power filter functions. In proposed system, the features of hybrid active power filter have been amalgamated in the control circuit of the voltage controlled voltage source inverter interfacing the photovoltaic system to the grid. As a result, the same inverter part of SHAPF is utilized to inject power generated from photovoltaic source to the grid and also to act as hybrid active power filter to compensate harmonics and reactive power demand. With using compensation ability, the grid currents are sinusoidal and in phase with grid voltages. The whole system is modeled in PSCAD/EMTDC. The simulation results are demonstrated to verify the operation and the control system of the proposed system. (C) 2016 Elsevier B.V. All rights reserved.